Why do we place such high value to things such as gold and diamonds? Wouldn’t it make sense to put that value on things that are more “useful”?
In: Economics
Gold is expensive *now* not only because it is relatively rare but also because it is quite useful, especially in electronics. In the past it was valuable because it is extremely non-reactive and relatively easy to work with. If I give you an apple in payment, it is eaten, or it rots. If I pay you in gold today, your grandkids could inherit it decades in the future. This is especially awesome in a world where trade between countries could take weeks, months, or possibly even years.
On the other hand, [Diamonds are not particularly rare. In fact, compared to other gemstones, they’re the most common precious stone found.](https://www.truefacet.com/guide/makes-diamonds-valuable/). Diamonds are expensive [because of marketing and the power of monopolistic corporate practices](https://www.businessinsider.com/heres-why-diamonds-are-so-expensive-2015-9).
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